“It’s (arguably) independent, but it’s very much a government entity.”

For all practical purposes, it’s ENTIRELY independent, and even though it parrots the line that it is a part of government, it really isn’t. But, for arguments sake, even if we just agree to call it a part of the government because both they and the govt. say it is, they operate OUTSIDE of the government and act without restrictions and with abilities that NO other government institution does. Even from the wiki article you linked:

1. “The stocks of the regional federal reserve banks are owned by the banks operating within that region and which are part of the system.” – Those are PRIVATELY owned banks it’s referring to…

2. “As an independent institution, the Federal Reserve System has the authority to act on its own without prior approval from Congress or the President.” – AND it isn’t a part of the judiciary….so which branch of government does it fall under, exactly? We only have 3, and this isn’t under ANY of them….

3. “The Federal Reserve System’s unique structure also provides internal checks and balances” – That isn’t how American government works. Checks and balances are supposed to come through the oversight of those OUTSIDE the group, not within….

4. “It also generates revenue independently without need for Congressional funding.” – Right, through the private entities controlling it (Chase, Morgan, etc. etc.)

5. “All profit after expenses is returned to the U.S. Treasury or contributed to the surplus capital of the Federal Reserve Banks” – Yeah, and guess which of those two actually happens….

It’s a whole lot of smoke and mirrors, with the truth being that the FED does what it wants, contributes little compared w/its reserves, and plays a game of seesawing our economy up and down for profit. Interest rates are an odd thing.